Directorate of distance education master of business administration

Discharge or Dismissal 
Discharge or dismissal involves separation of an employee from 
the pay roll of the organization.  There are two reasons for discharge 
a.  Unsatisfactory performance 
b.  Grave misconduct 
Lay – Off 
S.2 of the Industrial Disputes Act 1947 defines Lay off as follows:
“Lay off means the failure, refusal or inability of employer on 
account of coal, power or raw materials or accumulation of stock, break-

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down of machinery or by any other reason to give employment to a 
workman whose name is borne on muster roll”.
Compensation 
Wage Incentives 
Wages are payments in return for the use of labour. 
Wages: Monetary compensation paid to the workers on hourly 
basis or piece rates. 
Salaries: Monetary compensation paid to the staff like supervisors, 
executives etc., monthly. 
Time wage rate: Payment made on basis of time such as hourly, 
daily, weekly and monthly. 
Real wages: Real wages represent the goods and services which 
can be purchased from the money obtained from the wages.